What are Binary Options?
Well it’s actually really simple. A trader decides on a market movement, if the price will go up or down in a given time period. This can be anywhere from 30 seconds to 180 days. If the trader’s prediction is correct, they get a percentage back on their investment (Usually anywhere from 70% – 90%). If they are wrong, however, they lose that trades invested amount.
Trading Binary Options is an easy process, however to become a successful trader you must first learn the basics and work your way up. I have put together this guide of how I made it in the Binary Options Industry. The whole guide will cost around $200-250 dollars (for your account) and around $97 dollars if you truly want to start profiting of your own back.
I’ve broken down the information into “Beginner”, “Intermediate” and “Advanced”. If you’re new to Binary Options I would (obviously) recommend starting with the beginner section and over time move your way up. If you have some understanding of Binary Options I would still advise that you look at some of the principles and suggestions of the beginner section. By the way, don’t worry if you miss any of the links reading through, I have put them all separately at the bottom for your ease.
Let’s get to it!
1. Belong to a community / Signals group
I think one of the most important fundamental things when you start out as a trader is networking. You can learn valuable lessons from others without it being costly to yourself. You can also access a wide range of information and get shortcuts from experienced traders such as training materials.
I can’t begin to express how quickly I excelled as a trader when I began to engage with communities, but please be careful, there are a LOT of scammers in the Binary Options community – In fact this whole website was set up so that YOU can avoid scammers and poor performing services. Generally these communities are also signal groups, which brings me nicely onto my next point.
Out of all the communities I have belonged to, by far, the market leader is this group. You can check out my full review here, however, in short, this group has a large amount of people in it from all over the world. Its FREE* to join (subject to opening a broker account and depositing $200) and once you’re in, you’re in. There are no monthly subscriptions or nasty surprises. Just a lot of great people trying to profit, but more importantly a lot of great traders who offer PROFITABLE signals – all you have to do is follow them to start making money, its that simple!
Signals are where people or companies offer trading ideas or suggest positions to take. This is where a lot of people can get scammed online, often such scams are set up by Binary Options brokers which is also a reason to NEVER take signals that brokers offer. Think about it, why would a broker want you to profit? Brokers profit by you LOSING, when you win they aren’t profiting. This leads me onto my next piece of advice, open multiple broker accounts from TRUSTED brokers. Check out our top signals group below, be sure to check out the reviews on each so you can find your own best match.
Top Signal Groups
2. Open a trusted broker/s account
Lets say you start making a shed load of cash and believe me, it can happen quite quickly, brokers will start putting obstacles in the way and make the withdrawal process harder and harder, sure they will eventually will pay you what they owe you (well most brokers, some are scams within themselves but I’ll tell you in my opinion the best brokers shortly) but ultimately you want to avoid problems and this is what this guide is about. By opening multiple brokers it enables you to “spread” your winnings, meaning you are withdrawing smaller amounts from many brokers rather than large amounts from single brokers, which is where things CAN become “difficult”, though don’t let that scare you off, at the end of the day its just business for them.
In my option different brokers are better suited to different types of trading, as a beginner its good to know which brokers to have for your different types of trading. I strongly advise that you DIVERSIFY your trading types, that is, you should consider 2 – 3 different styles of trading. Before I get onto what my recommendations are for that let me say this first – STAY AWAY FROM 60 SECOND EXPIRIES. No really, stay well clear! If I catch you doing that I might have to poke you with something! If anyone, anywhere tells you that trading 60 seconds is profitable they are wrong. Sure some people make money, but it is NOT a sustainable nor long term method of consistently profiting when trading. A market movement in 60 seconds is virtually impossible to predict, there are far to many variables in play to calculate at once in order to accurately make an informed judgement. Trust me, I’ve lost hundreds of dollars doing this and I don’t want you to make the same mistakes.
If you are going to trade Binary Options I would strongly recommend the following. Set expiries (No more than an hour away), End of day trades and 5 minute trades. I would advise that you open an account with at least one of the following brokers. They offer $10 set expiries (some of the cheapest on the market) and as low as $5 for 300 second trades. Check out the list of the best brokers below. When adding our brokers we go through long selection, the main of which is how easy it is to get the money back you’ve deposited as well as all your profits, so rest assured that you will be safe with these brokers.
3. Create a Demo Account (AND USE IT BEFORE GOING LIVE)
One of the fundamental tasks when trying something new, whether it be a hobby, riding a bike or driving a car is practise; after all practise makes perfect right?
This couldn’t ring truer when trading, you really need to practise. Do you really think you are going to become a multimillionaire overnight on your first deposit? I don’t think so, but you can sure as hell create a situation whereby you have steady growth and don’t LOSE your initial deposit! I would recommend spot option as a demo platform, its the same user interface as most of my recommended brokers, so signing up with a demo has the added benefit of becoming familiar with the platform. I do not recommend that you trade for real with spot option moving forward. CLICK HERE to open a demo account with spot option.
4. Gain Access to charting software
Ok, so now you’ve got all your platform sorted it’s time to start understanding charts, chart patterns, candlesticks etc – these are all fundamentals for trading. There are many charting software platforms you can use, however I have found that MetaTrader is by far the best. You can download and install a copy of MT4 from HERE. You’ll have to create a demo forex account once you’ve downloaded the platform, but its pretty simple. If you get stuck then try searching for solutions on google or youtube. Alternatively you can fill out our CONTACT FORM and we will try and help you as best as possible.
5. Good training
Alright, so you’re getting pretty into this now aren’t you? Great! Now this section is where most people fail at trading, and there is a lot I can discuss here but I am going to keep it pretty brief because, although it’s the most important part, it’s probably also the most uninteresting laborious part. Let me level with you, you want to make money, I know that feeling, I’ve been there myself. You want to make money fast, yes I know that one all too well as well. Trust me when I say this takes time and patience if you want to master it yourself. If you DON’T want to learn it yourself then thats fine, I know of people who have made serious money by following THESE SIGNALS – They have a 72% win rate (pretty high compared to most signal providers).
I’ll break the training down for you. I’ll attach some free materials to help you get started, but I urge you to go online and find your own materials as well. There is a lot of FREE, good quality training out there! Here are the areas you should study. Emotional discipline / Trading psychology, Technical Analysis (for charts) and research how the news can affect stocks. As you learn about these 3 main fundamentals you will naturally branch off into other sub areas of trading fundamentals. Remember, demo your theories until you’ve made so many trades that you are confident you understand your theory.
6. Technical Indicators
Last, but by no means least is having good technical indicators. When you have learnt about technical analysis, i.e chart patterns, you should start to understand how these chart patterns form, that is, how one can confirm that a movement is likely to occur and thus make a successful prediction. As the name suggests, indicators aren’t perfect, however, if you use several indicators together and learn how they coincide with market movements you will have the best chance of success. I emphasise the point “several” in my previous sentence – you should use MORE than one indicator to make up a full prediction. The importance of good technical Indicators is something that, once you get into the Binary Options community, you will soon understand this point as crucial when becoming a full time trader.
A great indicator that I have used for trading 5 minute and some 15 minute expiries has to be the UOP indicator. Check it out HERE. I know what you are thinking, their website looks a little “get rich quick scheme-y”. Trust me they are genuine and you get a good product as well as having access to some really great training materials that you can natively transfer across whilst building your own strategy.
I think the above information will be more than enough to get you started in the big world of Binary Options trading. I offer advice and training to those who are looking to get off the ground. Please get in touch via our CONTACT FORM and don’t forget to check out our broker and service reviews here on Binary Busters. If you want to receive more useful information such as training, signal providers, reviews and scam avoidance techniques just subscribe to our mailing list below, oh and don’t worry – we won’t spam you 5 times a day trying to sell you garbage!